Nestlé Philippines Inc.

Nestlé Philippines Inc.

  • Nestlé Philippines, Inc. manufactures instant coffee, milk, and ready-to-cook noodles.

  • It employs over 3,200 people in the Philippines.

  • Nestlé Philippines ranks No. 14 in the Nestlé world and No. 1 in ASEAN countries.

  • Its products hold either the No. 1 or No. 2 brand position in their respective categories in the Philippines.

History of Nestlé in the Philippines

  • 1895: Nestlé products were already available in the Philippines.

  • 1911: The Nestlé and Anglo Swiss Condensed Milk Company was established with its first sales office in Calle Renta, Binondo.

  • World War II: Operations were suspended.

  • Post-Liberation: The company made a comeback as Filipro, Inc., importing products like MILO, NIDO, MILKMAID, and NESCAFÉ.

  • Early 1950s: Filipro faced difficulties due to import controls.

  • To sustain operations, it distributed peanut butter, napkins, fruit preserves, and fish sauce.

  • 1960: Nestlé S.A. and San Miguel Corporation formed Nutritional Products, Inc. (Nutripro).

  • 1962: Nutripro's first factory in Alabang, Muntinlupa, began manufacturing NESCAFÉ.

  • 1977: Filipro, Inc. and Nutripro Inc. merged under the name Filipro, Inc.

  • 1986: Filipro, Inc. changed its name to Nestlé Philippines, Inc.

  • 1991: Nestlé pioneered the ASEAN Industrial Joint Venture, producing breakfast cereals at the Nestlé Lipa Factory for export to ASEAN markets.

  • Currently, factories in Lipa, Cabuyao, and Cagayan de Oro are ASEAN Supply Centers.

  • Late 1998: Nestlé Philippines became a wholly-owned subsidiary of Nestlé S.A.

Location and Facilities

  • The head office is located at Nestle Center, 31 Plaza Drive, Rockwell Center, Makati City.

  • Manufacturing facilities are in Cabuyao, Laguna; Cagayan de Oro; Lipa, Batangas; and Pulilan, Bulacan.

  • A new factory is planned for Tanauan, Batangas.

Organizational Chart

  • CEO: Paul Bulcke

  • Chairman of the Board: Peter Brabeck-Letmathe

  • Vice Chairmen of the Board: Rolf Haenggi and Andreas Koopmann

  • Directors: Andre Kudelski, Daniel Borel, Steven Hoch, Naina Lal Kidwai, Jean-Pierre Meyers, Beat Hess, Ann Veneman, Henri de Castries, Jean-Pierre Roth, Titia De Lange

  • Key Personnel: JMD Nestlé Nutrition, KS Nestle Professional, MC Nestle Health Science, LC Nestle Waters, JH CFO Wan Ling Martello, CTO & Innovation WB Operations, JL Marketing, Sales & Nespresso PB Europe LF Asia, Oceania, Africa & Midd…, NN USA, Canada, Latin America &…, CJ CIO OG Governance, Compliance & Ser…, DF Communication RR Digital Marketing & Social M…, PB Marketing & Consumer Communi…, TB

Vision and Mission

  • Vision: To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products.

  • Nestlé aims to provide safe, high-quality foods that meet nutritional needs with taste and pleasure. “Good Food, Good Life”

  • Mission: Nestlé is the world's leading nutrition, health and wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

Products

  • Nestlé is the World's Largest Food Company.

  • It produces and markets well-known brands, including NESCAFÉ, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, NESTLÉ, and PURINA.

  • Its product range includes coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream, chilled dairy, breakfast cereals, confectionery, and pet care.

Corporate Social Responsibility (CSR)

  • Nestlé Philippines is committed to community and nation-building through programs for the underprivileged.

Agronomy Assistance

  • Since the 1960s, Nestlé Philippines has been helping coffee farmers improve their crops by providing knowledge on plantation management.

  • This increases coffee supply and farmer income.

Education and Manpower Development

  • Nestlé supports education by contributing to the Donate-a-Classroom Program.

  • It offers practical and theoretical training to students through programs like the Technical Skills Scholarship Program (in cooperation with Don Bosco College).

  • Academic Linkage Program: Provides training to students from educational institutions like De La Salle University and Xavier University.

Community Development

  • Nestlé develops programs relevant to the needs of the communities where it operates.

  • Examples:

    • Cut & Sew Livelihood Project (Nestle Lipa Factory): Provides job opportunities through factory orders.

    • Yard and Garden Livelihood Project: Livelihood opportunities through cut flower production and organic vegetable farming.

    • Suklay and Gunting Project: Hands-on training on hairdressing for housewives.

    • Misis Kong Trainors Program (Nestle Cabuyao Factory): Develops spouses of employees as trainers for livelihood workshops.

    • Julius Maggi Kitchen: Culinary lessons and lifestyle improvement sessions.

    • Nestlé Cagayan de Oro Factory: Supports the city government's Street Illuminations Project.

Health and Nutrition

  • Nestlé conducts feeding programs and medical missions.

Environmental Protection and Preservation

  • Nestlé Philippines is committed to environmental protection.

  • Nestlé Environmental Management System: Integrates all environmental initiatives in business operations.

  • Solid Waste Management Program: Aims to reduce waste in factories, offices, and employees' homes.

  • “Greening the Supply Chain”: Encourages business partners to develop and maintain their own environmental management systems.

  • Air Emission Testing: Conducts periodical free air emission testing on vehicles.

Analysis of Nestle Philippines

Nestle is known for innovation, focus on product differentiation, and meeting customer needs. The company also has social responsibilities towards their consumer.

  • Nestle want to increase customers' level of happiness, by letting customers learn about products, prospective customer benefits, how to use, maintain, and even dispose of the product, as well as new methods to use the product.

  • Nestle is committed to have a positive impact on individuals and families, communities, and the environment across the world.

  • Corporate Social Responsibility can be carried out by:

    • Applying a business code of ethics and values because following this can help a company to reach its goals.

    • Applying teamwork can establish good work between employees and managers.

    • Following the workplace health and safety program because it helps the companies prevent injuries and hazards in all work environments especially in their employees.

    • Being a good role model, treating the employees right and responsibly.

Strategies and Perspectives

  • Nestle Philippines' strategy is to focus on resources that unlock food power to improve the lives of people and pets, protect and enhance the environment, and generate significant value for shareholders and other stakeholders.

  • The perspective is to maintain a healthy diet for all.

  • One of the themes is food safety for everyone.

  • Putting out products that minimize health- threatening nutrients (sugars, sodium, and saturated fat) and increase beneficial ones (whole grains, vegetables, and micronutrients).

Social Responsibilities(Economical, Ethical, Legal, Philanthropic)

  • Economical:

    • To address plastic waste, Nestle Philippines is researching and developing technology to make its packaging recyclable or reusable by 2025.

    • Collaborates with public and private sector partners to ensure that none of its packaging ends up in the environment and educate consumers about solid waste management.

  • Ethical:

    • Nestle Philippines conducts its business ethically and principles-based, even without applicable regulatory requirements.

    • Commitment to integrity, fairness, and authenticity.

  • Legal:

    • Nestle's business procedures have been characterized by integrity, honesty, fair dealing, and adherence to all applicable laws from its inception.

    • Corporate business principles prescribe specific values and principles which the company embraces throughout the world.

  • Philanthropic:

    • "Kasambuhay Program for a million families" implementing a 500 million pesos program to assist one million families and thousands of front liners others in need of healthcare and its employees and those of its business partners.

Social Responsibility Towards Consumers

  • Nestle Philippines has been assisting coffee farmers in various parts of the country by providing them with information on how to improve their crops.

  • Nestle sponsors a classroom and providing scholarships for technical skills to support education and workforce development.

  • Also includes community development, as well as environmental preservation and prevention.

Social Responsibility Towards Community and Environment

  • Nestlé Philippines adapts its global commitment to plastics to the Philippine context in order to establish long-term projects that make a visible impact on the communities where we operate.

  • Nestlé is working to mitigate climate change by lowering greenhouse gas (GHG) emissions across our entire value chain.

  • Make waste minimization a priority by reusing and recycling as much as necessary.

  • By enabling the farmers with whom we work to implement sustainable practices, we improve our supply chain.

Company’s CSR problems and negative publicity

  • One of the problems of Nestle is the plastic that used for packaging sometimes people just throw the nestle package somewhere, so it causes damage to the environment.

  • The negative impact will generate greenhouse gases emissions when plastic is exposed to solar radiation that affects the air and water.

Discussion

  • The goal of CSR isn't just for the increase of the firm but also a significant advantage for the local area and climate.

  • CSR is worried about the equilibrium of financial and social objectives in treating partners morally in a socially capable way.

  • CSR teaches that what you do inside the firm, you should likewise do outside of the firm.

  • CSR shows that a business cares about broader social issues, not just those that increase profits so that we can attract customers who share our values.